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Sanko Gosei (TSE:7888) Gross Margin % : 13.03% (As of Feb. 2024)


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What is Sanko Gosei Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sanko Gosei's Gross Profit for the three months ended in Feb. 2024 was 円2,932 Mil. Sanko Gosei's Revenue for the three months ended in Feb. 2024 was 円22,498 Mil. Therefore, Sanko Gosei's Gross Margin % for the quarter that ended in Feb. 2024 was 13.03%.

Warning Sign:

Sanko Gosei Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.1%.


The historical rank and industry rank for Sanko Gosei's Gross Margin % or its related term are showing as below:

TSE:7888' s Gross Margin % Range Over the Past 10 Years
Min: 13.44   Med: 15.56   Max: 16.14
Current: 14.02


During the past 13 years, the highest Gross Margin % of Sanko Gosei was 16.14%. The lowest was 13.44%. And the median was 15.56%.

TSE:7888's Gross Margin % is ranked worse than
79.45% of 973 companies
in the Semiconductors industry
Industry Median: 28.7 vs TSE:7888: 14.02

Sanko Gosei had a gross margin of 13.03% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sanko Gosei was -2.10% per year.


Sanko Gosei Gross Margin % Historical Data

The historical data trend for Sanko Gosei's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sanko Gosei Gross Margin % Chart

Sanko Gosei Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.02 13.44 15.91 14.78 14.17

Sanko Gosei Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.98 14.56 12.14 16.00 13.03

Competitive Comparison of Sanko Gosei's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Sanko Gosei's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sanko Gosei's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Sanko Gosei's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sanko Gosei's Gross Margin % falls into.



Sanko Gosei Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Sanko Gosei's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )=Gross Profit (A: May. 2023 ) / Revenue (A: May. 2023 )
=11490 / 81113
=(Revenue - Cost of Goods Sold) / Revenue
=(81113 - 69623) / 81113
=14.17 %

Sanko Gosei's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=2932 / 22498
=(Revenue - Cost of Goods Sold) / Revenue
=(22498 - 19566) / 22498
=13.03 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Sanko Gosei  (TSE:7888) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Sanko Gosei had a gross margin of 13.03% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Sanko Gosei Gross Margin % Related Terms

Thank you for viewing the detailed overview of Sanko Gosei's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Sanko Gosei (TSE:7888) Business Description

Traded in Other Exchanges
N/A
Address
1200 Habushin, Toyama Prefecture, Nanto, JPN, 939-1698
Sanko Gosei Ltd is engaged in the molding and sales of plastic parts, production and assembly of mechanical/digital parts, design, production, and sales of molds for plastic molded parts, industrial products, industrial robots, and dispatching workers, among others.

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